A 25-year-old man and a 39-year-old man were walking along Park Avenue at Neutral Bay when they were allegedly confronted by two unknown men about 4pm on Sunday.
One of the men allegedly punched the 25-year-old man in the head and face several times, before allegedly stabbing him in the head, neck, back and chest.
The two men then fled the scene in a white Mazda.
The man was treated by paramedics at the scene before being taken to the Royal North Shore Hospital.
He has since undergone surgery and remains in a stable condition.
The 39-year-old man escaped the alleged attack uninjured.
A crime scene was established and examined by specialist forensic officers.
Detectives arrested a 24-year-old man on Darley Street in Mona Vale about 11.30am yesterday, before raiding a nearby home.
A number of items, including a white Mazda, were seized during the search.
The 24-year-old man was taken to Manly Police Station and charged with wounding a person with intent to cause grievous bodily harm.
He has been refused bail to appear at Manly Local Court today.
A manhunt remains underway to identify and find the second man.
Anyone with information that may assist North Shore detectives with their ongoing inquiries is urged to contact Crime Stoppers on 1800 333 000.
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